The ACD Method

Maverick74 said:
The outcome is completely irrelevant. What is relevant is this market is over leveraged by a factor of 100X. The market will inflict the most amount of pain on as many participants as possible in the shortest amount of time possible. Events like this act as a cleansing mechanism to wash out the weak overleveraged players. You don't need to understand Brexit or the outcome, what you need to understand is volatility and risk. Make no mistake about it, ET will become very quiet after next week.
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Thanks for the explanation. I'm flat everything but some distressed bonds at the end of the day most days, so should sleep well!
 
Maverick74 said:
The outcome is completely irrelevant. What is relevant is this market is over leveraged by a factor of 100X. The market will inflict the most amount of pain on as many participants as possible in the shortest amount of time possible. Events like this act as a cleansing mechanism to wash out the weak overleveraged players. You don't need to understand Brexit or the outcome, what you need to understand is volatility and risk. Make no mistake about it, ET will become very quiet after next week.
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How would you trade it after the fact? What moves or opportunities would you be looking into? Just trying to pick your brain again. Would a fade of the reaction be a type of trade? I imagine GBP/USD would be over extended in either direction.
 
Late post but worth noting. WTI settle yesterday was a textbook sushi roll. If you check the Dec contract for RB and HO, ditto. The gas and heat spot market and spreads have been so volatile that it has been worth keeping an eye on the forward curve.

And this is happening in front of my MADns. The last week has produced this relentless run from my MAUp all the way to the MADn and I am thinking that we probably go through here to the QAUp or even lower (this is where I get in trouble :-)). But looking at the last few years, more often than not, Q2 moves have been completely reversed starting end of Q2 into Q3. It will be interesting to see what follows. I mean, Q2 pivot for me is a long ways down!
 
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kinggyppo said:
this will have a direct effect on different markets, it seems the real driver is more autonomy
for the Brits. Pound is selling off and vol is elevated in many products so I think US and certainly Euro exchanges are being affected.
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Good thing you got those Gold fillings in your teeth King. You're a rich man now!
 
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